This week, Nigeria’s financial markets recorded significant activities across both the bond and commercial paper markets, indicating sustained investor interest and corporate funding needs.
In the bond market, the Federal Government issued two tranches with notable yields. The 2-year bond was offered at an annual rate of 16.046%, maturing on April 16, 2027, while the 3-year bond carried a slightly higher rate of 17.046%, maturing on April 16, 2028. These bond rates reflect the government’s strategy to attract investors amidst prevailing macroeconomic conditions and inflationary pressures.
On the corporate front, the commercial paper (CP) market remained vibrant as several companies sought short-term funding through new issuances. FSDH Merchant Bank led the pack with a Series 1 issuance worth N20bn, while Access Bank Plc recorded the largest single issuance for the week, raising N206.75bn through Series 1 and 2 commercial papers. HillCrest Agro-Allied Industries Limited also participated with Series 6 and 7 papers amounting to N3.97bn.
The activity in the CP market shows growing confidence in the debt market as a viable channel for corporate financing, while the bond offerings underscore government efforts to maintain liquidity and attract investment amidst fiscal tightening. This week’s financial market activities reflect resilience and strategic fundraising efforts by both public and private entities
In the equities market, several companies have declared their dividend payouts along with corresponding payment dates. Analysts believe that investors need to review these announcements carefully and consider dividend-paying stocks as part of their income strategy, while also noting qualification and payment dates to make informed decisions